Who are Today's Home Sellers and Buyers? ...Read On

By
Real Estate Agent with HomeSmart Real Estate BR632450000
https://activerain.com/droplet/5mqx

Who are today's Real Estate Buyers and Sellers and what are the 5 latest home buying and selling and buying trends?

 

Snapshot of Home Buyers

Home Buyer infographic. Visit source link at the end of this article for more information.© National Association of REALTORS®

Snapshot of Buyers

  • Average age: 47
  • Median household income: $93,200
  • Living situation: 61% married; 17% single females; 9% single males; 9% unmarried couples
  • Demographics: 84% white; 7% Hispanic; 5% Asian; 4% African American; 3% other
  • Average length of house hunt: 10 weeks (touring a median of 9 homes)
  • Primary reason for purchase: Desire to own a home
  • Most common house type purchased: Detached single-family home, 1,850 square feet, three bedrooms, two baths
  • Median cost of home purchased: $257,000
  • Most common method for finding real estate agent: Referral from friend, neighbor, or relative

Snapshot of Sellers

  • Average age: 57
  • Median household income: $102,900
  • Living situation: 72% married; 16% single females
  • Tenure in the home: 10 years (up from 6 years from 2001 to 2008)
  • Median length of time on the market: three weeks
  • Price sold: Median of 99% of the list price
  • Median equity: $60,000 higher than what owner originally paid at purchase
  • Incentives for buyers: 34% offered incentives, such as home warranty policies or assistance with closing costs
  • Most common method for finding a real estate agent: Referrals from friend, neighbor, or relative, as well as repeat business
  • Sellers’ high-priority tasks for agents: Market the home (21%); sell the home within a specific time frame (20%); price the home competitively (19%); help fix the home to prepare it for sale (16%); and find a buyer (13%).

Five Trends

Home buyers are ready to plant roots: Today’s buyers are young, multicultural, tech-savvy, and eager to buy a home as a personal investment, according to the National Association of REALTORS®’ 2019 Profile of Home Buyers and Sellers. Sellers, on the other hand, are already rooted, having lived in their current home an average of 10 years, NAR’s report shows. Sellers are equity-rich and rely on real estate professionals for guidance now more than ever before.

Five key themes emerged from NAR’s annual survey of recent home buyers and sellers, ranging from what buyers are looking for in a house to what both buyers and sellers expect from a real estate agent. NAR has been providing an in-depth analysis of home buyers and sellers since 1981. This year’s report is based on surveys of more than 5,800 consumers.

1. Buyers, sellers turn to agents in record numbers. The internet hasn’t replaced real estate professionals. Eighty-nine percent of buyers—a record high for the report—say they used an agent to purchase a home. On the seller side, the share of For Sale by Owner transactions hovers at 8%, on par with recent years. “While the home search process has shifted toward digital technology, the need for a trusted real estate agent to help sell a home is still paramount,” NAR notes in its report. “Personal relationships and connections remained the most important feature of the agent-buyer/seller bond.”'

2. Unmarried buyers are on the rise. Young adults ages 25 to 34 make up a quarter of all home buyers, the largest share. Meanwhile, first-time buyers are getting older: The median age of this cohort rose to 33—the highest on record in the NAR survey. The median age of first-time buyers in 1981 was 29. While most people who buy together still wait for marriage, unmarried buyers make up a growing share of the market, 9% compared with 8% a year ago. Married buyers made up 61% of the market. That’s down from 73% in 1981. Single female buyers made up 17% of the market, while the share of single male buyers was 9%.

3. Debt remains a hurdle to saving for a down payment. More than a quarter of buyers—28%—say they delayed their home purchase because of debt. The median amount of time homeowners spent saving for a down payment was four years, according to NAR’s survey. Many buyers cited saving for a down payment as the most difficult step in the homebuying process, indicating that student loans, credit card debt, and car loans diminished their purchasing power. The median down payment on a home purchase is 12% for all buyers. Broken out, the median down payment is 6% for first-time buyers and 16% for repeat buyers, according the report.

4. Equity gains prove a boon to sellers. Higher home prices have translated into faster appreciation for homeowners. Sellers this year sold their homes for a median of $60,000 more than they paid at the time of purchase, up from $55,500 a year ago, NAR’s survey shows. Sellers who owned their home for six to seven years reported a median $72,200 gain, while those who sold after 21 years of ownership saw a median gain of $162,000.

5. Inventory woes continue. “Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase,” the NAR report notes. The average number of weeks a buyer searched for a home was 10 weeks. New-home construction has failed to catch up to buyer demand, with the share of new-home sales falling to an all-time low of 13%, NAR reports. For comparison, new-home sales held steady at 16% from 2011 to 2015. Existing-home sales have edged up from 86% of the market last year to 87% this year. In 1981, new-home purchases comprised 18% of the market, while existing-home purchases made up 82%. Source: Melissa Dittman Tracey from REALTOR® Magazine 11-8-19.

 

Snapshot of Home SellersHome Seller infographic. Visit source link at the end of this article for more information.© National Association of REALTORS®

 

Are you ready to buy or sell a home in the Phoenix metro including Scottsdale?

 

Scottsdale Living in the Phoenix Metro Area

      Jeffrey Masich, REALTOR® explains Scottsdale and Arizona living and lifestyle

 

Here are more Scottsdale homes and/or land for sale:

Luxury homes for sale in Scottsdale 

Detached homes for sale in Scottsdale 

Scottsdale Pool Homes for sale 3+ Bedrooms

Condos, Townhomes, Patio Homes for sale in Scottsdale

All homes for sale in Scottsdale 

Scottsdale homes for sale with 1+ Acres 

Scottsdale homes for sale on golf course lots

Residential Lots for Sale in Scottsdale 1/2+ Acres

3+ garage homes with a pool for sale in Scottsdale

MLS Search for homes for sale in Scottsdale

 

Buy a home in Scottsdale Arizona

To learn more about Scottsdale living and to see homes for sale: Scottsdale and Homes For Sale or Arizona Homes For Sale.  

 

Meet Jeff Masich REALTOR®

 

Meet Jeff Masich, REALTOR® and ask about homes for sale anywhere in Phoenix metro

 

Here is a FREE MLS Search for homes for sale in Arizona. I, Jeff Masich would be pleased to help you find Arizona Homes For Sale and the right home at the right price!

free mls seach arizona

                                    Press FREE MLS Search to search for Arizona Homes and Land 

Posted by

Jeffrey Masich, Associate Broker, REALTOR®, MBA, GRI, BS Accounting

HomeSmart

Scottsdale, Arizona

JeffMasich@ArizonaHomesLand.com

http://ArizonaHomesLand.com

480-242-6500

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Real Estate Market Trends
Location:
Arizona Maricopa County
Tags:
arizona real estate
real estate market
arizona realtor
real estate market conditions
home buyer trends
arizona homes and land
jeff masich
home seller snapshot
home buyer snap shot
home seller trends
demographics home sellers
demographics home buyers

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainer
17,565
Realty Pack
Realty Pack - Bel Air, CA
Real Estate Blog

Thanks,  for sharing these market trends.

Feb 29, 2020 02:48 AM #1
Rainmaker
5,261,896
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI interesting information....and great way to present it....

Feb 29, 2020 05:39 AM #2
Rainmaker
1,872,569
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Informative and powerful blog post on today’s real estate market . Thx ....

Feb 29, 2020 06:31 AM #3
Rainmaker
1,035,932
June Piper-Brandon
Long & Foster Hampden - Baltimore, MD
Piecing Dreams One Home at a Time

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI this is great information and some interesting statistics for Realtors, Buyers and Sellers alike.

Feb 29, 2020 10:06 AM #4
Rainer
558,847
Sally Crane
WMS - Unity, WI
Woodland appraisal support.

Thanks for the update, all the best to you as you get many of these properties listed and sold.

Sally

Feb 29, 2020 12:19 PM #5
Rainmaker
3,295,419
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff I need to steel this idea and do one in my market and see how it compares to yours, Endre

Mar 02, 2020 10:30 PM #6
Rainmaker
748,433
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hi Endre Barath, Jr.  the data wsa published nationally through NAR, so they may have regional break downs also. Jeff

Mar 02, 2020 10:37 PM #7
Rainmaker
3,295,419
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff I will have to check it out since that might be easier than for me to recreate... thank you, Endre

Mar 02, 2020 10:39 PM #8
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
748,433

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI

Arizona Homes and Land Group/ Buy or Sell
How much is my home worth?
*
*
*
*
Spam prevention

Additional Information